News World News

Tuesday 20 February 2018

EU greenlights state aid to Germany's Air Berlin

The loan
The loan "will allow for the orderly wind-down of the insolvent airline Air Berlin without unduly distorting competition", regulators said

The European Union competition watchdog has approved Germany's plan to provide troubled low-cost carrier Air Berlin with a 150 million euro (£137 million) loan.

The European Commission, which polices EU state aid rules, said the loan "will allow for the orderly wind-down of the insolvent airline Air Berlin without unduly distorting competition".

The Commission also said the move would help protect the interests of air travellers.

Air Berlin, Germany's second-largest carrier, said last month that it was filing for bankruptcy after its main shareholder, Abu Dhabi-based Etihad, decided to cut its financing.

To allay travellers' fears they might be stranded on summer holiday, the government announced that it would provide a loan so the airline could continue flights for the time being.

AP

Press Association

Promoted Links

Today's news headlines, directly to your inbox every morning.

Promoted Links

Editors Choice

Also in World News